Why is dusd not pegged to the $?

Currently we can say the DUSD is overvalued compared to the real USD, right? That's why we can buy DFI for 3.38 DUSD instead of 5 USD. So in other word, currently the arbitrage seems to not be at play... Why is that?

1. it need some time to set up bot for professional arbitragierer 2nd as more money in the pool is as more u can arbitrage as more profit u are generating as more people will arbitrage no worries DUSD will have soon the same price as dollar, as the dex started we had the same in thebeginning i made 50k $ because no arbitrage bots was their, but u could do this only 1 weeks or so than the professinals was ready (u should behappy that u can arbitrage now before pro bots are involved )

Right now it's a bit of a dead-end path. You need to outlay and block 2x-3x-4x worth of collateral for 40% gain trade. And you cannot get rid of the loan in any way other than buying it back from the same pool. With raging FOMO at the moment and people scooping DUSD without looking at the price it's a very risky and undefined play. This proposal may change the rules of the game CONSIDERABLY: https://twitter.com/uzyn/status/1467418778728374279

Thx for the link!!

Does anyone know if the plan continues to be to open the DUSD-dAsset pools on CakeDefi? As there is no minting there, all these users would have to buy DUSD through the DEX, making it even more unstable, right?

probably, but maybe some of them already switched their DFI beforehand to dUSD, then impact wont be that terrible

DUSD-DFI has been on cake since yesterday

Yeah I was wondering about all the other pools, each newly added pool is against DUSD so requires buying DUSD.

TBH, with the pump ongoing that sounds like a very bad idea. Just a few days ago you'd be getting 2.30-2.70 DUSD per DFI. Now even with the 40% premium you're netting 3.40 per DFI. IMO, if you'd like to LM dAssets, minting DUSD and enjoying a smaller sized position in the pool is a better deal longer term. Remember, you still own your DFI in the vault and it may appreciate several-fold going forward. #roadto50 is now just 10x. #doyourownDD #notafinancialadvice

True. DFI itself was supposed to become a cornerstone of upcoming launch and the team has mentioned a few times that DFI liquidity squeeze might be underway. In reality, the DUSD somehow stole this spotlight and it feels like the team is surprised by this development.

The squeeze is inevitable though irrespective.... DFI will experience a significant upside

That's.... why I'm here. ;) I'm just a bit conflicted to see people mindlessly jumping on DUSD no matter the price. Kind of reminds me the 2x staking rewards/10 year freezer release - a lot of folks have overreacted a bit, IMO. And again, if you remember, Cake folks were surprised by the adoption rate.

I do not get it. How on the Earth they thought DFI should be the main hero if all pools require dUSDT.? And now they are surprised? No point of exchanging dfi for dUSD at this point. loan is better option. Maybe things will change tomorrow or in a few days.

So, ai can deposit DFI as collateral, then mint dUSD and buy DFI, then sell DFI for dUSD when the price of dUSD is 1$?

correct, but i would make much more sence to arbitrage and u do this process very often and make a lot of profit for 0 risk

I think everyone should prepare themselves to sit on this position/loan for a while.

perhaps but its free money and people love free money

What is the easier way to do arbitrage?

👍🏼👍🏼 - I'm just patiently hodling DFI. 😊

check julian videos takes to long to right here anything Julian Hosp and Lord Mark Show)

I did but didn't get it. I mean at least that part. The only way to get dUSD is either to mint it or swap DFI...swapping doesn't make sense, so the loan is the only one. Julian said he is going to use that option.

Taking loans seems to be risky in this condition. And many did just that. My idea from the beginning was to swap DFI for dasset, but with dUSD overvaluated, I decided to take a loan...now, I am stuck and will probably wait a few days for the dUSD price to normalize

As this did solve some problems for mirror it should also work for DefiChain.

Yeah, essentially right now the chain/ecosystem should incentivize operators who mint DUSD like crazy, because there is serious demand. Instead, there is "taxation with no representation", i.e. exposure to risk with limited upside. I'll have to read on Mirror more.

Isnt the whole system designed the way so the dfi price only can go up?